Alstom-Led Group to Sign South African Order for 3,600 Coaches

A group led by Alstom SA (ALO) will sign a contract today to build 3,600 carriages for Passenger Rail Agency of South Africa in the decade through 2025, the agency said in an e-mailed statement.

South Africa is revamping its rail-passenger services to meet the needs of a growing population and replace trains that have been in use since the 1950s. The contract is a boon for Alstom, whose orders for the April-June period dropped 32 percent from a year earlier to 4.07 billion euros ($5.5 billion) because of falling demand for its thermal-power and rail equipment.

The Gibela consortium led by Levallois-Perret, France-based Alstom was last year named preferred bidder for a contract then valued at 51 billion rands ($5.14 billion). Alstom outbid six other companies, including Bombardier Inc. (BDRBF) from Canada and China CNR Corp. Ltd. The project will create 8,100 jobs in South Africa, the agency said in December.

To contact the reporters on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net; Kamlesh Bhuckory in Johannesburg at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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